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Five experts weigh in on whether it’s a challenge Musk and Tesla can overcome:· Oppenheimer managing director Colin Rusch agrees with Jed Dorsheimer on Tesla’s job cuts, but isn’t bullish on what they’ll accomplish. The other thing that we think they’re going to end up doing is ramping up this factory in China, we think people are going to get bullish on that.” · Needham’s Raji Gil thinks that Tesla may have overestimated how many people can actually afford a high-end electric vehicle. I think t

Tesla shares took a big hit to end the week after CEO Elon Musk announced that the company would cut 7 percent of its workforce in order to cut costs as the company prepares to ramp up production and boost margins as they get closer to releasing the long-awaited $35,000 version of the Model 3.

Musk says Tesla faces “an extremely difficult challenge” in making their products a competitive alternative to traditional vehicles, adding that he expects Q4 profit to come in significantly lower than Q3.

Five experts weigh in on whether it’s a challenge Musk and Tesla can overcome:

· Oppenheimer managing director Colin Rusch agrees with Jed Dorsheimer on Tesla’s job cuts, but isn’t bullish on what they’ll accomplish. “This reduction in force should have been anticipated. This is very similar to what we saw on the front end of the Model S, where they had some aggressive hiring and additional staff to make the ramp successful. Today, we’re seeing them pare back the headcount in the same way…” Rusch also says that even though there is a “real market of size” for the current iteration of the Model 3, it’s not enough to keep Tesla growing. “For them to see the growth that’s expected by the Street, they do need to get the price down to $35,000. I see that as an extraordinarily difficult thing for them to accomplish, I actually don’t think they will accomplish that.”

· Canaccord Genuity’s Jed Dorsheimer thinks the workforce cut is just fine, calling it “clean-up” after the company’s latest push to ramp up Model 3 production came with a wealth of new hires. “It’s not a huge surprise to see this,” Dorsheimer observes. “Obviously you never want to see a growth company cutting staff like this, but we’re not overly concerned.” Right now, he sees a scenario where Tesla’s Q4 numbers could be great even with a lower-than-expected EPS result. “They cleared out a fair amount of inventory in the fourth quarter, so they cash flow number we think can surprise to the upside still, even with a lower EPS number. The other thing that we think they’re going to end up doing is ramping up this factory in China, we think people are going to get bullish on that.”

· “They’re certainly in a better position than they were eight or nine months ago,” says ROTH Capital’s Craig Irwin. “Where we’re going to see pressure on the stock today is the ‘copy-paste’ expectations of Q3 going through 2019 need to be reset…” But even though Tesla might be healthier now than at this point in 2018, the challenges in front of them are many. “We’re early days in who’s going to win this war in electric vehicles, and you’ve got a lot of new entrants coming in, and so it’s tough to pick the winner right now.”

· Needham’s Raji Gil thinks that Tesla may have overestimated how many people can actually afford a high-end electric vehicle. “Clearly, in my mind, they have an issue with demand,” says Rusch, ” If you do the math… you have to conclude that 90 percent of the reservations that have been built up over the past couple of years are folks that wanted the standard battery version of the vehicle, which is $35,000.” That version does not yet exist, and with the Federal EV tax credit being phased out, Rusch says time could be running out for Tesla to deliver their as-yet mythical car. “Once the credit starts to expire and we go into Q1 and Q2, and they cannot produce the cheaper version of the vehicle in time, do we see a pick-up in cancellations?”

· Westly Group founder Steve Westly loves where Elon Musk’s company is right now, calling Tesla “the iPhone of electric vehicles,” and saying they’re well ahead of the game when it comes to a quickly-changing auto market. “Virtually every automaker in virtually every country in the world is moving all-electric, and Tesla’s frankly in the pole position. They’re winning,” he says. “The challenge now is, after they’ve really won the high-end market in the U.S., how quickly can they go international? I think they’re very well-positioned for that… and how quickly can they get to that mass market $35,000 vehicle with a 250-mile range? I think Tesla’s going to win that race.”

Apple’s latest iPhone models are facing huge discounts in China as retailers try to sell the struggling devices. That comes as the top-of-the-line Apple smartphones have posted poor China sales on what experts say are too-high prices for the world’s largest smartphone market and a lack of innovative features compared to local competitors like Huawei. Other third-party sellers on the site had the devices for even cheaper, offering flash sales to try to unload iPhones. Sunion, an Apple re-seller,

That comes as the top-of-the-line Apple smartphones have posted poor China sales on what experts say are too-high prices for the world’s largest smartphone market and a lack of innovative features compared to local competitors like Huawei. The technology giant itself acknowledged earlier this month that unexpectedly low sales in the Chinese market would likely lead to worse-than-anticipated first quarter revenues.

One of the most recent iPhone cost cuts in the country came from Suning, a large Chinese retailer, which changed the price of the 128GB version of the iPhone XR from 6,999 yuan ($1,036) to 5,799 yuan ($858) — a 1,200 yuan ($178) discount.

Other third-party sellers on the site had the devices for even cheaper, offering flash sales to try to unload iPhones. One seller had a 256GB version of the iPhone XS Max, Apple’s most premium device, for 9,699 yuan ($1,436), way below the U.S. firm’s official selling price of 10,999 yuan ($1,628) for that smartphone.

Still, that remains more expensive than in the U.S., where the same phone would sell for $1,249, according to the Apple website.

And that’s just on one site. Other retailers in China are also putting their iPhones on sale. Sunion, an Apple re-seller, was advertising 700 yuan off for both the 128GB and 256GB versions of the iPhone XR. E-commerce site Pinduoduo, which allows third-parties to sell products, also had hefty discounts across all of the latest iPhone models.

Apple’s issues in China are down to two major factors, experts and local consumers say: It got its pricing wrong, and it has failed to introduce features to excite consumers in a forward-thinking technology market. Now, analysts said, competitors have taken market share in the premium smartphone space.

With more and more consumers looking to buy a midsize SUV, Ford is rolling out a fresh version of its iconic Explorer model. The 2020 Explorer has been redesigned with special features, new technology and creature comforts SUV owners have come to expect. “Even though the Explorer is the top-selling midsize SUV, there’s a lot more competition and new models coming in the next couple of years.” 1 position in the midsize SUV market. “Last year, midsize SUVs made up almost 14 percent of the market a

With more and more consumers looking to buy a midsize SUV, Ford is rolling out a fresh version of its iconic Explorer model. Unveiled Wednesday in New York, it’s the first all-new version of the Explorer in eight years.

“The company thrives when we have fresh product, it is just as simple as that,” Ford’s president of global markets, Jim Farley, told CNBC after unveiling the new Explorer. “With this new line-up of utilities from top to bottom, it is just really going to allow us to grow.”

The 2020 Explorer has been redesigned with special features, new technology and creature comforts SUV owners have come to expect. That includes Ford Co-Pilot360 which provides driver assistance to avoid collisions. In addition, Ford increased the towing capacity by 66 percent while making the Explorer lighter and more fuel efficient.

Starting at $33,000, the new model goes on sale this summer, Ford said.

“The new Explorer is very important for Ford,” said Jeff Schuster, analyst at automotive consulting firm LMC Automotive. “Even though the Explorer is the top-selling midsize SUV, there’s a lot more competition and new models coming in the next couple of years.”

While there were 21 midsize SUV’s available in the U.S. last year, LMC Automotive expects that number to climb to 26 next year and to 30 models by 2022.

That competition will be looking to cut into the Explorer’s No. 1 position in the midsize SUV market. Last year, Ford sold more than 261,000 Explorers. An impressive number considering the model has not had a major makeover in years.

“The Explorer is really in the sweet spot of the market,” said Schuster. “Last year, midsize SUVs made up almost 14 percent of the market and we think the segment will keep growing.”

Whether or not the Explorer remains the leader of the SUV market remains to be seen, but the new model should position Ford to continue doing well in that segment. That’s critical since Ford will be relying on its trucks and SUVs to generate profits while it restructures its business, investing billions in future technology like autonomous drive vehicles.

“We are on our toes again,” said Farley. “We will grow more revenue, better profitability, you know, this is when the car business is great.”

McDonald’s is planning to debut its own take on Dunkin’s Donut Fries next month, according to a Business Insider report. McDonald’s will also offer a deal of six Donut Sticks and a small coffee for $1.99, according to Business Insider. “We’re not surprised to see competitors imitate our success with Donut Fries given their popularity with customers, ” Dunkin’ spokesperson Michelle King said in a statement to CNBC. Dunkin’ sold the Donut Fries through the end of last year, but could bring the pop

McDonald’s is planning to debut its own take on Dunkin’s Donut Fries next month, according to a Business Insider report.

The fast food chain’s interpretation of the doughnut sticks will be offered for a limited time and only at breakfast, Business Insider reported. The churro-like snack will be made from deep-fried sweetened dough, with cinnamon sugar sprinkling the outside.

McDonald’s declined to confirm the report, but spokesperson Andrea Abate said to expect more product news in 2019.

In the years since McDonald’s extended its breakfast menu all day, the early meal competition between fast food chains has heated up. The company has been relying on limited-offering breakfast items to boost slowing U.S. sales. In October, it rolled out Triple Breakfast Stacks as one example.

That strategy could work if McDonald’s manages to replicate Dunkin’s success with the menu item. CEO David Hoffman said on the company’s third-quarter earnings call that its Donut Fries, which were released in July, were one of the top performing limited-offerings ever for the brand.

The biggest difference so far between the two products appears to be their marketing. Dunkin’ targeted customers looking for an afternoon snack to help drive diners to stores after lunchtime, while McDonald’s will reportedly only offer the menu item for breakfast.

McDonald’s will also offer a deal of six Donut Sticks and a small coffee for $1.99, according to Business Insider. If customers want to skip the coffee, they can buy six of the deep-fried sticks for $1.29 or a dozen for $2.39.

That’s a better deal than the $2 it cost to buy one serving — or five pieces — of Dunkin’s doughnut fries, although the size of McDonald’s take on the snack is unknown.

“We’re not surprised to see competitors imitate our success with Donut Fries given their popularity with customers, ” Dunkin’ spokesperson Michelle King said in a statement to CNBC.

Dunkin’ sold the Donut Fries through the end of last year, but could bring the popular item back in the future, King said.

President Donald Trump on Thursday doubled down on his insistence that any funding to prevent an imminent government shutdown must be accompanied by additional funding for border security. “Any measure that funds the government must include border security,” Trump said at a White House bill signing event. Trump said negotiations with House and Senate Republicans would continue to focus on more money for the border. This sent Republicans scrambling to create a new spending bill which met his dema

President Donald Trump on Thursday doubled down on his insistence that any funding to prevent an imminent government shutdown must be accompanied by additional funding for border security.

“Any measure that funds the government must include border security,” Trump said at a White House bill signing event. “We have no choice.”

The president said he looked forward to signing “a bill that fulfills our fundamental duty to the American people” to protect the nation’s borders, but he did not put a specific sum on the amount he would require in order to sign a spending bill to keep the government open.

Trump said negotiations with House and Senate Republicans would continue to focus on more money for the border. “We’ll be working on that, and we’ll see what we can do. Hopefully that will all come together,” he said.

The president’s remarks struck a softer note than the one his press secretary, Sarah Huckabee Sanders, adopted in a statement earlier in the day Thursday, when she announced that Trump would not sign the short term deal that the Senate had already passed.

This sent Republicans scrambling to create a new spending bill which met his demands.

Moments after Trump began speaking at the White House, House Republicans on Capitol Hill introduced a new version of a short-term spending bill to fund the government that the Senate had passed on Wednesday night.

The new version contained an additional $5.7 billion in appropriations for border security over the next five years, $700 million more than Trump has so far demanded.

The windshield wipers slap furiously as the pickup splashes its way through the deep mud bog, the last in a series of obstacles along an off-road trail rough enough to shake loose a few fillings. It’s not the sort of route most drivers will experience in a lifetime, but pickup owners expect their trucks to be ready to handle that sort of situation on a regular basis. So, when Ford decided to give some automotive journalists a chance to drive the all-new Ranger pickup this month, it took them up

The windshield wipers slap furiously as the pickup splashes its way through the deep mud bog, the last in a series of obstacles along an off-road trail rough enough to shake loose a few fillings.

It’s not the sort of route most drivers will experience in a lifetime, but pickup owners expect their trucks to be ready to handle that sort of situation on a regular basis.

So, when Ford decided to give some automotive journalists a chance to drive the all-new Ranger pickup this month, it took them up into the mountains east of San Diego where they could put the truck through what can best be described as a torture test.

Ford’s full-size F-Series pickups make up the best-selling product line in the U.S. automotive market, but the automaker has been notably absent from the midsize truck segment since killing off the old version of its Ranger back in 2012, shuttering the archaic Twin Cities Assembly Plant in Minnesota. It’s a decision the automaker soon came to regret.

There are a variety of reasons why Toyota sold just 3,180 of its Prius hatchbacks in November. Sales of the entire Prius “family,” including a plug-in hybrid version, are running barely a quarter of its peak. And some observers believe the hybrid version of the cross-over utility vehicle could out-sell Prius in 2019. As a result, many are questioning whether Toyota even needs the Prius anymore. And the 2019 model shows that the automaker is looking for ways to revitalize the hybrid hatchback’s a

“For the next Prius we have to think about how to … separate [it] from the rest of the Toyota line-up,” Deputy Chief Engineer Koichi Kaneko said in an interview in Kohler, Wisconsin where the automaker was giving journalists a first chance to drive the 2019 model last week.

There are a variety of reasons why Toyota sold just 3,180 of its Prius hatchbacks in November. Sales of the entire Prius “family,” including a plug-in hybrid version, are running barely a quarter of its peak.

The sharp downturn in fuel prices has scuttled sales of all mileage-minded vehicles. But, as Kaneko alluded to, Toyota has also diluted the appeal of the Prius by now offering hybrid powertrain options on a variety of its more conventional models, such as the Corolla sedan and RAV4 crossover-utility vehicle.

The RAV4 is now Toyota’s best-selling American model, last year nudging past the familiar Camry sedan. And some observers believe the hybrid version of the cross-over utility vehicle could out-sell Prius in 2019. As a result, many are questioning whether Toyota even needs the Prius anymore.

“Toyota can say the Prius did everything they needed,” said Stephanie Brinley, principal automotive analyst for IHS Markit, helping burnish the Japanese automaker’s green credentials and proving there’s a market for gas-electric drivetrain technology.

“But what do they need Prius for” anymore? Brinley quickly added. “It’s difficult to walk away from a nameplate with so much equity, but it may make sense to drop it.”

For now, at least, that’s not something Toyota plans to do. And the 2019 model shows that the automaker is looking for ways to revitalize the hybrid hatchback’s appeal. That includes some modest tweaks to interior and exterior design responding to wide criticism of the fourth-generation model after its 2016 model-year debut.

“The results of the discussions in Buenos Aires are positive, but contrary to President Trump’s enthusiastic comments, did not result in a breakthrough.” The president’s broad conclusions about the trade agreement also didn’t mesh with Chinese state media’s more measured descriptions. The White House did not immediately respond to a CNBC request for comment overnight. Political watchers were quick to highlight the contrast between Trump’s lofty proclamations and the official statement from the W

“The results of the discussions in Buenos Aires are positive, but contrary to President Trump’s enthusiastic comments, did not result in a breakthrough.”

In a statement, the White House press secretary said Beijing will agree to purchase “a not yet agreed upon, but very substantial” amount of U.S. agricultural, energy, industrial and other products in order “to reduce the trade imbalance between our two countries.”

During the talks at the G-20 meeting, the two superpowers agreed to delay additional taxes on each other’s goods for the next 90 days — during which time they will try to overcome difficult differences including “forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft.”

The president’s broad conclusions about the trade agreement also didn’t mesh with Chinese state media’s more measured descriptions.

The White House did not immediately respond to a CNBC request for comment overnight.

Political watchers were quick to highlight the contrast between Trump’s lofty proclamations and the official statement from the White House.

Trump’s comments “show his number one priority is the appearance of being a great dealmaker,” said Mintaro Oba, a former U.S. State Department official who specialized in the Koreas during the Obama administration. “It doesn’t matter to him what the details are, as long as he looks strong to his supporters.”

“When it comes to anything associated with him, especially deals, things can’t just be good, they have to be best,” Oba continued.

Ride-hailing service Uber has made its exit from Southeast Asia — and now the battle between two of region’s most valuable start-ups is beginning. Go-Jek, Indonesia’s first “unicorn” — tech-speak for a startup that’s believed to be valued at $1 billion or more — is taking the competition to rival Grab’s home turf in Singapore. Go-Jek launched the beta version of its ride-hailing app in Singapore on Thursday. The early, test version of the app will let customers book rides, though they can only b

Ride-hailing service Uber has made its exit from Southeast Asia — and now the battle between two of region’s most valuable start-ups is beginning.

Go-Jek, Indonesia’s first “unicorn” — tech-speak for a startup that’s believed to be valued at $1 billion or more — is taking the competition to rival Grab’s home turf in Singapore.

Go-Jek launched the beta version of its ride-hailing app in Singapore on Thursday. The early, test version of the app will let customers book rides, though they can only be picked up and dropped off within a number of limited areas currently.

Despite that, the Indonesian company is confident of its ability to attract customers in Singapore.

A former Federal Trade Commission official claimed a Facebook official mislead and international committee of parliamentarians Tuesday in a hearing about the company’s privacy policies. The allegation centers around whether third-party developers had access to information on private Facebook profiles in the early days of the platform. Facebook was transitioning developers onto the newer platform with more limited information, Allan said. In version one it included some access to friends’ data wh

A former Federal Trade Commission official claimed a Facebook official mislead and international committee of parliamentarians Tuesday in a hearing about the company’s privacy policies.

The allegation centers around whether third-party developers had access to information on private Facebook profiles in the early days of the platform. In response to a question from Damian Collins, chair of the U.K. culture, media and sport select committee, about Facebook’s changes to its developer policies in 2014, Facebook Vice President of Policy Solutions Richard Allan said there were two distinct versions of the platform at the time. Facebook was transitioning developers onto the newer platform with more limited information, Allan said.

“What developers had under the first version was the ability to ask you to install their application, and if you agreed to it and agreed to certain permissions, then they could also access some of the information that your friends shared with you. Version two stopped that,” Allan said. “So in neither version was it full access to data. In version one it included some access to friends’ data where they’d given permission, in version two, that access was removed.”

“This is false,” former Obama-era FTC Chief Technologist Ashkan Soltani told the committee later in the day.

Soltani made an unexpected appearance at Tuesday’s hearing in the U.K. to debunk what he claimed were technical issues with testimony. Soltani said his visit was so last minute that he had to borrow a blazer from a friend before showing up in front of government officials.

In disputing Allan’s testimony, Soltani cited a 2011 settlement between Facebook and the FTC, where the commission alleged Facebook misled users by allowing their profile information to be accessible to app developers even when their profiles were set to private. He also said white listed apps he tested on Facebook as late as 2018 could still access personal information and information of friends even if they had turned off this setting.

This contradicts Allan’s statement that “version one” of the platform pre-2014 only “included some access to friends’ data where they’d given permission.”

Soltani said his motivation for coming to the committee was to provide them the technical expertise that would help it make an informed decision about Facebook. He said he has been working on this issue for the past decade and has tested the the app privacy settings himself. Soltani said he was a technical consultant for the Wall Street Journal’s “What They Know” series about information privacy.